EnerVest, Ltd., and its affiliates today announced they have entered in to a binding agreement to sell assets in the Permian Basin to QEP Energy Company, a wholly owned subsidiary of QEP Resources, Inc., for $950 million. The divestiture is expected to close on or before Jan. 31, 2014, and is subject to customary closing conditions and purchase price adjustments.
The deal includes acreage and producing wells in Martin, Andrews and Crockett counties. EnerVest acquired the majority of the properties being sold in September 2012.
"Our asset team in Houston and our team in the field in Midland have done an exceptional job to increase the value of these properties," said John B. Walker, EnerVest president and CEO. "This divestiture illustrates our core strategy of creating value for our institutional investors by acquiring attractive assets, increasing their value through drilling and development and then selling them to leading upstream firms like QEP."
In addition to the Permian sale, EnerVest also has divested other properties throughout the country this year. The total for all property sales, once closed, is greater than $1.4 billion. In 2013, EnerVest also acquired $1.5 billion of oil and gas properties.
Wells Fargo Securities, LLC served as financial advisor to EnerVest, Ltd., on the sale of the Permian Basin assets, and Vinson & Elkins provided legal counsel.
